Peru - Poverty and wealth

Despite years of promises and billions in social programs, the bulk of
Peru's population (54 percent) lives in poverty, according to the
CIA World Factbook.
Of the poor, the UNDP estimates that 19 percent live in
"absolute poverty," meaning they survive on less than US$1
a day.

The contrasts between rich and poor are clearly seen in Lima, the
capital, which has more than doubled in size in the past 2 decades. The
majority of the capital's population live in shantytowns, known
as
pueblos jovenes
locally, most of which are perched on barren sand dunes near the
Pacific coast or on rocky outcrops in the foothills of the Andes. The
shantytowns surround upscale neighborhoods, most of which are a cross
between Miami homes and Spanish villas.

Income distribution continues to be extremely skewed, with the top 10
percent of the population controlling 35.4 percent of the
nation's wealth, while the bottom 10 percent controls just 1.6
percent. The gap is seen

GDP per Capita (US$)

Country

1975

1980

1985

1990

1998

Peru

2,835

2,777

2,452

2,012

2,611

United States

19,364

21,529

23,200

25,363

29,683

Brazil

3,464

4,253

4,039

4,078

4,509

Ecuador

1,301

1,547

1,504

1,475

1,562

SOURCE:
United Nations.
Human Development Report 2000; Trends in human development and
per capita income.

Distribution of Income or Consumption by Percentage

Share: Peru

Lowest 10%

1.6

Lowest 20%

4.4

Second 20%

9.1

Third 20%

14.1

Fourth 20%

21.3

Highest 20%

51.2

Highest 10%

35.4

Survey year: 1996

Note: This information refers to income shares by percentiles of
the population and is ranked by per capita income.

SOURCE:
2000 World Development Indicators
[CD-ROM].

in access to basic services. While the wealthy neighborhoods have had
access to potable water, waste removal, paved roads, and electricity for
decades, these services are newcomers to most shantytowns. In fact, only
in the 1990s did most of Lima receive electricity, and water for many
areas is still brought in by cistern trucks.

The literacy rate in Peru is 88.7 percent and education is universal and
free. An estimated 7 million children and adolescents are of school age.
Of these numbers, the U.S. State Department estimates that 6 percent of
children and 17 percent of young people either never attend or drop out
of school. The high school drop-out rate in rural areas is more than 50
percent. An estimated 750,000 students attend nearly 50 state and
private universities.

There are 455 hospitals and 1,083 clinics in Peru, serving a population
of 27 million people. There are 23,700 doctors, 7,950 dentists, and
15,000 nurses.

The government tried to offset many of its social problems with
programs, but these programs were aimed more at ensuring voter support
than solving the root causes of the problems. In 2000, 60 percent of
rural Peruvians and 40 percent of urban residents were receiving some
sort of government aid through community soup kitchens, food give-aways,
or school-based breakfast, lunch, or health-care programs. The incoming
government has pledged to maintain most of the programs, but says it
will de-politicize them.

The World Bank and International Monetary Fund estimate that the
Peruvian economy needs to grow by 6 percent annually over a sustained
period of time if the country is going to adequately reduce poverty
levels. Compared to neighboring Bolivia and Ecuador, Peru is not doing
poorly, but it lags well behind Chile and Colombia in terms of per
capita income and access to goods and services.